The World Bank (WB) approved a US$49.6 million loan for Indonesia to finance the development of urban project through a better integrated planning and city management. At the same time, the Fund give loans Rp1.4 trillion (US$97.90 million) for West Java to clean up the Citarum River, the longest and dirtiest river in the province.
Reportedly, Indonesia is among the largest contributors to urbanization globally. According to the United Nations’ estimates, Indonesia’ urban population increased by nearly 59 million people from 2010 to 2018, behind only China and India. At present, 137 million people live in Indonesia’s cities or 54 percent of the population. The share of urban residents is expected to grow to 68% of the population by 2025.
Because of persistent gaps in infrastructure and inadequate attention to spatial prioritization of infrastructure investments, Indonesia has not fully benefited from the positive effects of urbanization.